The market is strange right now.  Very strange.  I said so much in the Boston Herald today:

“This is a weird market,” said Mike DiMella, managing partner of the Charlesgate Realty Group. “The high end is unaffected by the downturn but there’s really a squeeze in the middle. And buyers, thinking they’re going to get more for their money, are looking to live closer to downtown and not wanting to buy what they could afford in other neighborhoods.”

The dynamics of a flight toward quality in well-established Hub districts has hurt the sales of moderately priced condos in other areas, DiMella said.

“Buyers are being really selective and are unwilling to buy nicer properties in areas they view as the fringe,” said DiMella.

Good inventory is very low in desirable downtown neighborhoods like the South End and Back Bay, which is keeping prices stable.  Even though there is a lot of demand for these areas, transactions are down across the board because of a limited selection for buyers to choose from.  As I've said before, patience is certainly a virtue as a buyer right now looking downtown.  As is knowing when to jump.  And jump quickly.

It is unfortunate that many development projects that have plenty of inventory and some decent options for buyers are just not selling well.  They tend to be located not in the core downtown markets but just outside in what were "emerging" markets only a year or two ago.  But they are no longer seen that way as buyers are perceiving a lot more investment risk in those areas.

These neighborhoods will turn back around again, but the question is when.  There is a crisis of confidence in the market, in those areas especially, right now.  Dorchester, Seaport, and other areas that might be viewed as "fringe" are struggling to attract buyers who are instead pushing to get into the core ("stable" and "well-established") areas where they see a lower risk of price declines.  

But there are some (certainly not all) potentially great opportunities to jump into an area that is developing, and, in many cases, less expensive, very conveniently located, etc. and get a lot more space for your money.  Developers are trying to unload units and are willing to bargain to get it done.  But it certainly is not for the faint of heart or for someone looking for a short term turnaround.  You must be ready to own a property for a longer period of time, but the end result could work in your favor.